Economic Justice in Business Organizations

Justice-Based Leadership, Management, and Governance

• The focus is on applying the principles of economic justice at the micro level, within a company or organization.
• The goal is to transform the corporation from a wage system to an ownership system, where every person has equal opportunity to become an owner and has equal access to the means of acquiring and owning productive capital.

Problems with the Modern Business Corporation

• The corporation is characterized by concentrated ownership and power, with 10% of the population owning 90% or more of corporate equity.
• This leads to harm, including a lack of distribution of purchasing power and a fracturing of people, with different stakeholders wanting their own share.
• The corporation is often seen as a tool for those who have access to money and financing, leading to a concentration of power and control.

Just Third Way Approach

• The Just Third Way approach focuses on protecting property rights, growing the corporation, and expanding access to new money, asset-backed money, and interest-free credit to purchase corporate shares.
• The goal is to increase the distribution of purchasing power and promote economic justice, rather than trying to take away from existing owners or redistribute wealth.

Conflict Model or Zero-Sum Game

• The current corporation is characterized by a conflict model, where different stakeholders are pitted against each other, with the assumption that one person's gain must come at the expense of another.
• This leads to a lack of unity and cooperation, with each stakeholder looking out for their own interests.

Win-Win Approach

• The Just Third Way approach offers a win-win approach, where every person has a shared interest in making the corporation successful and profitable.
• This approach promotes synergy, where the whole is greater than the sum of its parts, leading to a greater result for all stakeholders.

Wage System vs. Ownership System

• The current corporation is based on a wage system, where people are paid for their labor and do not have a stake in the ownership of the company.
• The Just Third Way approach promotes an ownership system, where every person has the opportunity to become an owner and has a stake in the success of the company.

Justice-Based Ownership

• Justice-based ownership requires that every person has equal access to the means of acquiring and owning productive capital.
• This includes equal access to insured capital credit, which allows people to purchase shares in the company without having to use their own savings.
• The corporation's profits are distributed equally among shareholders, based on the distribution of shares.

Participative Justice

• Participative justice is the principle of determining the value of labor inputs in a free market basis.
• Distributive justice is the principle of distributing profits or dividends based on the distribution of shares.

Accountability and Transparency

• Accountability and transparency are essential in a justice-based managed corporation.
• This includes mechanisms for detecting and correcting problems, as well as the distribution of information and the ability to understand what it means.

Private Property Rights

• Respect for private property rights is essential in a justice-based corporation.

• This includes the right to control what you own, the right to the full fruits of what your capital produces, and the right to vote as a shareholder.### Justice-Based Management and Governance

• Justice-based management is about structuring the diffusion of power to ensure equal opportunity and checks and balances within a corporation.

• It starts with the notion of treating everyone with justice, including workers, customers, and stakeholders.

Leadership and Governance

• Leadership is essential in any organization, but it should be focused on justice as a guiding principle.
• A leader should serve, teach, and empower others, rather than dominating them.
• Leadership may change depending on the needs of the organization.

Competitiveness and Profitability

• Studies have shown that companies with an ownership culture tend to outperform others by 150% in terms of profitability.
• Three key elements are essential for affecting productivity and competitiveness:
  • Long-term equity sharing to give employees a stake in the company's growth.
  • Frequent financial feedback and information sharing to keep employees engaged.
  • Sharing of rewards in the form of profits to motivate employees.

Participatory Management

• Participatory management involves giving employees a sense of dignity and positive contribution to the company.
• It takes many forms, tailored to the specific company, and reflects the concept of subsidiarity.
• It involves putting power where decision-making needs to be, rather than concentrating it at the top.

Transformation to an Ownership System

• To transform a corporation, it's essential to:
  • Articulate a set of core values and a company vision.
  • Develop a strategic plan that involves all employees.
  • Implement an ownership opportunity that is fair and just.
  • Establish a pay and reward system that reinforces economic justice.
  • Implement a feedback system that is regular and objective.
  • Develop a participatory management system that empowers employees.
  • Establish a governance and accountability structure that ensures transparency and accountability.

Ongoing Communications and Education

• Ongoing communications and education are essential to ensure that the transformation is sustained.
• It involves leadership development, succession planning, and financing growth.

Justice-Based Governance

• Justice-based governance involves structuring the board to ensure that power is not concentrated in management.
• It involves creating a board with a third of management, a third of non-management, and a third of outside board members.
• It also involves establishing a voting system that is fair and just.

Ownership Unions and Labor Unions

• The concept of ownership unions can transform labor unions and enable them to represent all owners.
• It involves shifting from a wage system orientation to ownership thinking.

Active Social Justice

• Active social justice is the art of change in a justice-based managed company.
• It involves perceiving a problem, educating others, and coming together to fix it.
• It involves defining the problem, formulating a solution, and acting on it.
• It also involves evaluating results and fine-tuning the solution.

Cycle of Social Justice

• The cycle of social justice involves perceiving a problem, educating others, coming together to fix it, and internalizing the solution.
• It recognizes that none of us are perfect, and none of our institutions are perfect, but with the right principles, we can keep moving in the right direction.

Justice-Based Leadership, Management, and Governance

• The focus is on applying economic justice principles at the micro level, within a company or organization, to transform it from a wage system to an ownership system.

Problems with the Modern Business Corporation

• Concentrated ownership and power, with 10% of the population owning 90% or more of corporate equity, leads to harm, including a lack of distribution of purchasing power and a fracturing of people.
• The corporation is often seen as a tool for those who have access to money and financing, leading to a concentration of power and control.

Just Third Way Approach

• The approach focuses on protecting property rights, growing the corporation, and expanding access to new money, asset-backed money, and interest-free credit to purchase corporate shares.
• The goal is to increase the distribution of purchasing power and promote economic justice, rather than trying to take away from existing owners or redistribute wealth.

Conflict Model or Zero-Sum Game

• The current corporation is characterized by a conflict model, where different stakeholders are pitted against each other, with the assumption that one person's gain must come at the expense of another.
• This leads to a lack of unity and cooperation, with each stakeholder looking out for their own interests.

Win-Win Approach

• The Just Third Way approach offers a win-win approach, where every person has a shared interest in making the corporation successful and profitable.
• This approach promotes synergy, where the whole is greater than the sum of its parts, leading to a greater result for all stakeholders.

Wage System vs. Ownership System

• The current corporation is based on a wage system, where people are paid for their labor and do not have a stake in the ownership of the company.
• The Just Third Way approach promotes an ownership system, where every person has the opportunity to become an owner and has a stake in the success of the company.

Justice-Based Ownership

• Justice-based ownership requires that every person has equal access to the means of acquiring and owning productive capital.
• This includes equal access to insured capital credit, which allows people to purchase shares in the company without having to use their own savings.

Participative Justice

• Participative justice is the principle of determining the value of labor inputs in a free market basis.
• Distributive justice is the principle of distributing profits or dividends based on the distribution of shares.

Accountability and Transparency

• Accountability and transparency are essential in a justice-based managed corporation.
• This includes mechanisms for detecting and correcting problems, as well as the distribution of information and the ability to understand what it means.

Private Property Rights

• Respect for private property rights is essential in a justice-based corporation.
• This includes the right to control what you own, the right to the full fruits of what your capital produces, and the right to vote as a shareholder.

Key Elements for Competitiveness and Profitability

• Long-term equity sharing to give employees a stake in the company's growth.
• Frequent financial feedback and information sharing to keep employees engaged.
• Sharing of rewards in the form of profits to motivate employees.

Participatory Management

• Participatory management involves giving employees a sense of dignity and positive contribution to the company.
• It takes many forms, tailored to the specific company, and reflects the concept of subsidiarity.

Transformation to an Ownership System

• To transform a corporation, it's essential to:
  • Articulate a set of core values and a company vision.
  • Develop a strategic plan that involves all employees.
  • Implement an ownership opportunity that is fair and just.
  • Establish a pay and reward system that reinforces economic justice.
  • Implement a feedback system that is regular and objective.
  • Develop a participatory management system that empowers employees.
  • Establish a governance and accountability structure that ensures transparency and accountability.